How to check import duties for your Chinese customer

When exporting your products to China, your importer usually pays import duties. To determine the selling price to your Chinese customer, you will want to know in advance whether China levies import duties on your products. This will increase the cost price for your Chinese importer. You can find the tariffs in Access2Markets. These tariffs depend on the HS code and the value of goods. Your customer also pays import VAT in China.

The Chinese importer is usually responsible for paying the above taxes. As an exporter, you only arrange this for your Chinese customer if you have agreed on it. With this example, you learn how much import duty your Chinese customer pays.

Chinese import duties

When it comes to setting a price for your customer, it is important to know your position in the Chinese market. And also whether China will levy import duties on your products. The example below shows you how to find Chinese import duties on your products.

Example: fruit sorting machine

You are a supplier of fruit sorting machines and want to look up what import duties your potential customer will have to pay in China. Follow the steps below.

1. Go to Access2Markets.
2. In the 'Product name or HS code' field, enter 8433 60. This is the code for ‘machines for cleaning or sorting eggs, fruits or other agricultural products’. Each product has a different HS code. If you do not know the HS code for your product, contact Dutch customs (in Dutch) or Statistics Netherlands.
3. In the 'Country of Origin' field, select the country from which you are exporting the goods, such as the Netherlands. In the ‘Country of Destination' field, select China. Click on ‘Search’.
4. On this page, you will see that China has several sub-codes under HS code 8433 60. Namely 8433 60 10, ‘machines for cleaning or grading eggs’. And 8433 60 90, ‘other, or machines for cleaning fruits or other agricultural products’.
   
   For the fruit sorting machine, click on code 8433 60 90. This will take you to the ‘Rates’ tab. You will see two rates: a ‘General duty rate’ of 30% and a ‘Most Favoured Nation rate’ of 5%. According to this database, products from the Netherlands fall under the Most Favoured Nation rate. Your Chinese importer will have to pay 5% import duty on your fruit sorting machine.
   
   On the left of the page, you can see the ‘Taxes’ tab. Clicking on this tab will show you that your Chinese importer will have to pay 9% import VAT on fruit sorting machines. The Chinese import VAT rate is 13% for the majority of products. Certain products such as alcoholic products, tobacco, motor vehicles, and particular luxury goods are also subject to a consumption tax.
   
   Under ‘Procedures and formalities’, you can find more information about local laws and regulations in China. Here you can also see which general or specific documents you need to import your product into China.

Still unsure about how to use Access2Markets? Take a look at this KVK video about exports.

Chinese customs, like Dutch customs, levies import duties on the price paid by the Chinese importer plus transportation and insurance costs to the point of entry into China.

Example: importing goods into China

Import VAT in China

Chinese importers with a ‘general VAT taxpayer’ registration can reclaim Chinese import VAT paid through their VAT returns when importing goods into China. If your Chinese importer has an annual turnover of no more than 5 million Chinese renminbi (RMB), simplified VAT rules apply. These companies, called small-scale taxpayers, cannot reclaim Chinese import VAT.

Dutch companies importing products in China cannot usually reclaim Chinese VAT. You can reclaim VAT if you have a branch in China (in Dutch) and are registered as a general VAT taxpayer.

Dutch companies that sell products to Chinese consumers, for example through an online shop, need a Chinese customs agent. They will pay Chinese import VAT.

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